DANISH TAX REFORM 1998

DANISH TAX REFORM 1998

In late June 1998 the Danish Parliament agreed on yet another tax reform, the third in only ten years.

This latest reform is primarily directed towards personal taxation, but also areas related to VAT and other duties as well as to business taxation are covered to some extent.

The major changes with regard to personal taxation are a decrease in the tax value of decrease in the tax value of deduction of interest, a new tax on pension funds, and a new real property. Environmental taxes have been increased. In the area of business taxation a new depreciation act has been passed, and new changes have been made regarding transfer pricing and thin capitalisation.